The Central Bureau of Investigation (CBI) issued notices to 21 companies, which allegedly received loans from public sector banks and financial institutions.
The move comes a day after the agency arrested the CEO of LIC Housing Finance and seven others in the multi-crore housing scam and trading of insider information on companies.
The central agency has asked these companies to provide all documents relating to the case. They been asked to explain the benefits they received and favours that were extended to the arrested officials by them.
The agency claims the companies that allegedly benefited from the scam include Mantri Realty, Sigrun, Entertainment World, Indore City Treasure, Lavasa, Ashapura Minechem, BGR Energy, OPG Group, Krishna Group, Suzlon, Emaar-MGF, MBDB, Gold Souk Project and Jaypee Group.
In the FIR registered by CBI in Mumbai, the agency claimed that Naresh Chopra, LIC's secretary (investment), leaked information about companies like Adani group, J P Hydro, JSW Power, Religare, DB Realty, Pantaloons, Adalite and MTech, that allegedly benefited from the scam.
At 9.51 am, LIC Housing Finance was trading at Rs1001, down by 5.40%, with a volume of 10.05 lakh shares on the BSE.
DB Realty was trading at Rs211.75, down by 9.99%, with a volume of 0.21 lakh shares on the BSE.
Thursday, November 25, 2010
Wednesday, November 24, 2010
Fake housing loan scam hit markets in late trade
The domestic market witnessed a sharp fall today with huge selling coming in in the last half an hour of trade as the Central Bureau of Investigation (CBI) conducted raids in metro cities like Mumbai, Delhi, Kolkata and Chennai in context of the multi crore fake housing loans scandal. Fears of a likely financial scam triggered a huge sell-off in banking as well as realty companies' shares, leading the representative sectoral indices on the BSE to crash by around 3% each. There were reports that the CBI (economic offences wing) raided LIC Housing Finance - promoted by LIC (LIC has 36% stake in the company) - on November 23. The CBI is investigating a case of unjustified issuance of loan to one of the builders and misappropriation of funds at LIC Housing.
Capital goods, technology and cement companies' shares along with State Bank of India, Oil & Natural Gas Corporation (ONGC), Housing Development Finance Corporation (HDFC), HDFC Bank, SAIL and Reliance Communications underwent selling pressure. In the mid-cap space, TVS Motors, Gujarat Flourochem, Akzo Nobel, Apollo Tyres and Great Offshore gained in the range of 4-8% while Money Matters plunged 19% (on talks of a raid by CBI officials).
The Sensex began the session in the morning 43 points higher at 19735. The index held on to its gains through out the morning session. It hit the day's high of 19836 in the morning session. The 30 share bellwether Sensex continued to trade in the green in the afternoon session holding on its morning gains. But in the last hour of trade it slipped drastically to hit the day's low of 19376 as banking and realty stocks fell sharply on news of the fake housing loan scam.
At the finishing, the Sensex shut at 19460, lower by 232 points. The Nifty ended at 5866, down by 68 points.
Capital goods, technology and cement companies' shares along with State Bank of India, Oil & Natural Gas Corporation (ONGC), Housing Development Finance Corporation (HDFC), HDFC Bank, SAIL and Reliance Communications underwent selling pressure. In the mid-cap space, TVS Motors, Gujarat Flourochem, Akzo Nobel, Apollo Tyres and Great Offshore gained in the range of 4-8% while Money Matters plunged 19% (on talks of a raid by CBI officials).
The Sensex began the session in the morning 43 points higher at 19735. The index held on to its gains through out the morning session. It hit the day's high of 19836 in the morning session. The 30 share bellwether Sensex continued to trade in the green in the afternoon session holding on its morning gains. But in the last hour of trade it slipped drastically to hit the day's low of 19376 as banking and realty stocks fell sharply on news of the fake housing loan scam.
At the finishing, the Sensex shut at 19460, lower by 232 points. The Nifty ended at 5866, down by 68 points.
Tuesday, November 23, 2010
Korean war hit mkts across the globe
Nov 23 2010 1:45PM
North Korea has bombarded a South Korean island with artillery shells, injuring civilians and soldiers and setting more than 60 properties ablaze. The attack, which comes days after it emerged that North Korea was pressing ahead with its illegal nuclear programme, marks a serious further escalation of tensions on the Korean Peninsular.
Markets freefall
The impact of tensions between North and South Korea was felt internationally, with US 10-year Treasury futures rising and the Japanese yen falling.
The major Asian markets too closed on a weak note. Hang Seng fell more than 600 points to close at 22888, while Shanghai Composite and Straits Times fell more than 50 points.
European markets also felt the heat with The FTSE down by more than 50 points at 5680, CAC is trading down by 25 points at 3786, DAX is down more than 20 points at 6822.
Indian markets too witnessed a sharp-fall as North Korea fired dozens artillery shells on South Korean island. At 1.15 pm, the Sensex fell more than 500 points to 19363 at whereas Nifty touched 5825.
North Korea has bombarded a South Korean island with artillery shells, injuring civilians and soldiers and setting more than 60 properties ablaze. The attack, which comes days after it emerged that North Korea was pressing ahead with its illegal nuclear programme, marks a serious further escalation of tensions on the Korean Peninsular.
Markets freefall
The impact of tensions between North and South Korea was felt internationally, with US 10-year Treasury futures rising and the Japanese yen falling.
The major Asian markets too closed on a weak note. Hang Seng fell more than 600 points to close at 22888, while Shanghai Composite and Straits Times fell more than 50 points.
European markets also felt the heat with The FTSE down by more than 50 points at 5680, CAC is trading down by 25 points at 3786, DAX is down more than 20 points at 6822.
Indian markets too witnessed a sharp-fall as North Korea fired dozens artillery shells on South Korean island. At 1.15 pm, the Sensex fell more than 500 points to 19363 at whereas Nifty touched 5825.
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